California Reaches $1M Settlement with Cheesecake Factory, Janitorial Contractors

The California Labor Commissioner’s Office reached a $1 million settlement against the Cheesecake Factory Restaurants Inc. and two janitorial contractors for reportedly underpaying 589 janitorial workers.

The investigation began in 2016 after receiving complaints of possible wage and hour violations of janitors who cleaned Cheesecake Factory restaurants in San Diego County.

The workers were employed by Zully Villegas, dba Magic Touch Commercial Cleaning, which in turn was engaged by Americlean Janitorial Services Corp., dba Allied National Services, for Cheesecake Factory Restaurants Inc. These entities were cited in 2018 for unpaid minimum wages, unpaid overtime, liquidated damages and waiting time penalties, as well as meal and rest period premiums. All three entities were held liable under California Labor Code Section 2810.3.

All three entities appealed the citations, and the case settled before going to hearing. Under the settlement’s terms, contractors must provide information on prior wage claims as part of the bidding process with Cheesecake Factory, as well as provide annual wage and hour trainings to janitors. Cheesecake Factory can audit their contractors and agreed to train their managers and those overseeing janitorial contracts to ensure the law is followed.

Janitors who worked at Cheesecake Factory restaurants in Brea, Huntington Beach, Irvine, Mission Viejo, Newport Beach, Escondido, San Diego-Fashion Valley and San Diego-Seaport District between Aug. 31, 2014 and Aug. 31, 2017 are being encouraged to contact the Labor Commissioner’s office at (619) 767-2039 to see if they are entitled to owed wages and damages under the settlement agreement.